Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Chevron Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency profile demonstrates a distinct cyclical shift in leverage and debt-servicing capacity over the analyzed period. An initial phase of deleveraging and strengthening of coverage ratios occurred between March 2022 and early 2023, followed by a sustained trend of increasing debt reliance and declining interest coverage through March 2026.
- Debt-to-Equity, Debt-to-Capital, and Debt-to-Assets Ratios
- These three metrics exhibit a synchronized U-shaped trajectory. From March 2022 to September 2023, there was a consistent reduction in debt relative to equity, capital, and assets, with Debt to Equity reaching a minimum of 0.12 and Debt to Assets bottoming at 0.08. However, starting in late 2023, a steady reversal occurred. By March 2026, the Debt to Equity ratio climbed to 0.25, the Debt to Capital ratio reached 0.20, and the Debt to Assets ratio rose to 0.14, indicating a gradual increase in the company's reliance on borrowed funds to finance its operations and growth.
- Financial Leverage
- Financial leverage mirrored the broader debt trends, initially declining from 1.70 in March 2022 to a low of 1.59 in June 2023. Following this trough, the ratio entered a period of sustained growth, reaching a peak of 1.79 by March 2026. This upward movement suggests a strategic shift toward a more aggressive capital structure over the latter half of the observation period.
- Interest Coverage Ratio
- The most significant volatility is observed in the interest coverage ratio. The ratio experienced a sharp increase from 44.87 in March 2022 to a peak of 102.29 in March 2023, indicating an exceptionally strong capacity to service interest obligations during that window. Subsequently, a prolonged and steep decline ensued, with the ratio falling to 14.41 by March 2026. While the ratio remains positive, the substantial downward trend suggests a diminishing margin of safety regarding debt servicing costs relative to earnings.
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Debt Ratios
Coverage Ratios
Debt to Equity
Chevron Corp., debt to equity calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term debt | 5,828) | 977) | 3,591) | 6,191) | 4,076) | 4,406) | 5,144) | 1,735) | 282) | 529) | 440) | 1,269) | 2,931) | 1,964) | 2,221) | 3,230) | 314) | ||||||
| Long-term debt, excluding debt due within one year | 39,600) | 39,781) | 37,953) | 23,276) | 25,605) | 20,135) | 20,697) | 21,449) | 21,553) | 20,307) | 20,119) | 20,245) | 20,275) | 21,375) | 21,420) | 23,005) | 29,019) | ||||||
| Total debt | 45,428) | 40,758) | 41,544) | 29,467) | 29,681) | 24,541) | 25,841) | 23,184) | 21,835) | 20,836) | 20,559) | 21,514) | 23,206) | 23,339) | 23,641) | 26,235) | 29,333) | ||||||
| Total Chevron Corporation stockholders’ equity | 183,715) | 186,450) | 189,843) | 146,417) | 149,244) | 152,318) | 156,202) | 159,233) | 160,625) | 160,957) | 165,265) | 158,325) | 159,449) | 159,282) | 158,680) | 153,554) | 146,219) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to equity1 | 0.25 | 0.22 | 0.22 | 0.20 | 0.20 | 0.16 | 0.17 | 0.15 | 0.14 | 0.13 | 0.12 | 0.14 | 0.15 | 0.15 | 0.15 | 0.17 | 0.20 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||
| ConocoPhillips | 0.36 | 0.36 | 0.36 | 0.36 | 0.36 | 0.38 | 0.37 | 0.37 | 0.37 | 0.38 | 0.40 | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.38 | ||||||
| Exxon Mobil Corp. | 0.19 | 0.17 | 0.16 | 0.15 | 0.14 | 0.16 | 0.16 | 0.16 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.24 | 0.26 | 0.28 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to equity = Total debt ÷ Total Chevron Corporation stockholders’ equity
= 45,428 ÷ 183,715 = 0.25
2 Click competitor name to see calculations.
The analysis of the solvency metrics reveals a cyclical trend in the capital structure, characterized by an initial deleveraging phase followed by a period of significant debt expansion and equity growth toward the end of the observed timeframe.
- Debt to Equity Ratio Trends
- A consistent decline in the debt to equity ratio is observed from March 2022 through September 2023, where the ratio dropped from 0.20 to a period low of 0.12. This indicates a strengthening of the solvency position during this window. However, a reversal occurred starting in late 2023, with the ratio climbing steadily to reach a peak of 0.25 by March 2026, suggesting a shift toward higher financial leverage.
- Total Debt Trajectory
- Total debt experienced a sustained reduction from March 2022 ($29.3 billion) to September 2023 ($20.6 billion). Following this trough, debt levels entered a period of volatility and growth. A substantial acceleration in borrowing is evident starting in late 2024, with total debt increasing from $24.5 billion in December 2024 to $45.4 billion by March 2026, nearly doubling the obligations held during the 2023 lows.
- Stockholders' Equity Dynamics
- Equity levels demonstrated moderate growth from March 2022 ($146.2 billion) to a peak in September 2023 ($165.3 billion), before experiencing a slight contraction through June 2025. A sharp increase in equity is observed in June 2025, jumping to $189.8 billion. Despite this significant increase in the equity base, the concurrent rise in total debt resulted in an overall increase in the debt to equity ratio during the final quarters of the analysis.
- Solvency Interpretation
- The data indicates that while the company maintained a conservative solvency profile through 2023, the capital structure evolved toward higher leverage by 2026. The increase in the debt to equity ratio to 0.25 reflects a strategic increase in debt that outweighed the growth in stockholders' equity, though the absolute ratio remains relatively low in a general corporate context.
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Debt to Capital
Chevron Corp., debt to capital calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term debt | 5,828) | 977) | 3,591) | 6,191) | 4,076) | 4,406) | 5,144) | 1,735) | 282) | 529) | 440) | 1,269) | 2,931) | 1,964) | 2,221) | 3,230) | 314) | ||||||
| Long-term debt, excluding debt due within one year | 39,600) | 39,781) | 37,953) | 23,276) | 25,605) | 20,135) | 20,697) | 21,449) | 21,553) | 20,307) | 20,119) | 20,245) | 20,275) | 21,375) | 21,420) | 23,005) | 29,019) | ||||||
| Total debt | 45,428) | 40,758) | 41,544) | 29,467) | 29,681) | 24,541) | 25,841) | 23,184) | 21,835) | 20,836) | 20,559) | 21,514) | 23,206) | 23,339) | 23,641) | 26,235) | 29,333) | ||||||
| Total Chevron Corporation stockholders’ equity | 183,715) | 186,450) | 189,843) | 146,417) | 149,244) | 152,318) | 156,202) | 159,233) | 160,625) | 160,957) | 165,265) | 158,325) | 159,449) | 159,282) | 158,680) | 153,554) | 146,219) | ||||||
| Total capital | 229,143) | 227,208) | 231,387) | 175,884) | 178,925) | 176,859) | 182,043) | 182,417) | 182,460) | 181,793) | 185,824) | 179,839) | 182,655) | 182,621) | 182,321) | 179,789) | 175,552) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to capital1 | 0.20 | 0.18 | 0.18 | 0.17 | 0.17 | 0.14 | 0.14 | 0.13 | 0.12 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.13 | 0.15 | 0.17 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||
| ConocoPhillips | 0.27 | 0.27 | 0.27 | 0.26 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.28 | 0.29 | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.28 | ||||||
| Exxon Mobil Corp. | 0.16 | 0.14 | 0.14 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.16 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.20 | 0.21 | 0.22 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 45,428 ÷ 229,143 = 0.20
2 Click competitor name to see calculations.
An analysis of the solvency metrics reveals a distinct three-phase trajectory in the company's capital structure, transitioning from a period of aggressive deleveraging to a significant expansion of both total debt and total capital.
- Deleveraging Phase (March 2022 – December 2023)
- A consistent downward trend in total debt is observed during this period, falling from 29,333 million US$ to a low of 20,559 million US$ by September 2023. This reduction in liabilities, paired with a relatively stable total capital base, resulted in the debt-to-capital ratio compressing from 0.17 to a minimum of 0.11. This phase indicates a prioritized focus on strengthening the balance sheet and reducing financial leverage.
- Stabilization and Initial Re-leverage (March 2024 – December 2024)
- The trend reversed in early 2024, as total debt began a gradual ascent from 21,835 million US$ to 24,541 million US$ by the end of the year. During this interval, total capital remained largely stagnant, hovering around 180,000 million US$. Consequently, the debt-to-capital ratio experienced a moderate increase, shifting from 0.12 to 0.14, marking the end of the deleveraging cycle.
- Capital Expansion and Leverage Acceleration (March 2025 – March 2026)
- A substantial increase in both debt and capital is evident starting in 2025. Total debt rose sharply, peaking at 45,428 million US$ by March 2026. This was accompanied by a significant surge in total capital, which grew from 178,925 million US$ in December 2024 to 229,143 million US$ by March 2026. Despite the increase in the capital base, the pace of debt accumulation exceeded the growth in capital, driving the debt-to-capital ratio upward to 0.20.
Overall, the financial position shifted from a low-leverage profile in late 2023 to a more leveraged position by early 2026. The most recent data suggests a strategic shift toward larger-scale financing and capital investment, as evidenced by the simultaneous rise in total debt and the total capital base.
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Debt to Assets
Chevron Corp., debt to assets calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Short-term debt | 5,828) | 977) | 3,591) | 6,191) | 4,076) | 4,406) | 5,144) | 1,735) | 282) | 529) | 440) | 1,269) | 2,931) | 1,964) | 2,221) | 3,230) | 314) | ||||||
| Long-term debt, excluding debt due within one year | 39,600) | 39,781) | 37,953) | 23,276) | 25,605) | 20,135) | 20,697) | 21,449) | 21,553) | 20,307) | 20,119) | 20,245) | 20,275) | 21,375) | 21,420) | 23,005) | 29,019) | ||||||
| Total debt | 45,428) | 40,758) | 41,544) | 29,467) | 29,681) | 24,541) | 25,841) | 23,184) | 21,835) | 20,836) | 20,559) | 21,514) | 23,206) | 23,339) | 23,641) | 26,235) | 29,333) | ||||||
| Total assets | 329,551) | 324,012) | 326,501) | 250,820) | 256,397) | 256,938) | 259,232) | 260,644) | 261,651) | 261,632) | 263,927) | 251,779) | 255,886) | 257,709) | 259,735) | 257,936) | 249,048) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Debt to assets1 | 0.14 | 0.13 | 0.13 | 0.12 | 0.12 | 0.10 | 0.10 | 0.09 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.12 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||
| ConocoPhillips | 0.19 | 0.19 | 0.19 | 0.19 | 0.19 | 0.20 | 0.19 | 0.19 | 0.19 | 0.20 | 0.20 | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.20 | ||||||
| Exxon Mobil Corp. | 0.10 | 0.10 | 0.09 | 0.09 | 0.08 | 0.09 | 0.09 | 0.09 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 45,428 ÷ 329,551 = 0.14
2 Click competitor name to see calculations.
The analysis of solvency metrics from March 31, 2022, to March 31, 2026, reveals three distinct phases of capital structure movement: a period of deleveraging, a phase of moderate stabilization, and a subsequent period of significant expansion in both debt and assets.
- Deleveraging Phase (March 2022 – September 2023)
- A consistent downward trend in total debt is observed during this period, with obligations falling from US$ 29,333 million to a low of US$ 20,559 million. Because total assets remained relatively stable, fluctuating within a narrow range between US$ 249,048 million and US$ 263,927 million, the debt to assets ratio improved from 0.12 to 0.08.
- Stability and Incremental Leverage (December 2023 – December 2024)
- A gradual reversal in the debt trend occurred starting in late 2023. Total debt rose from US$ 20,836 million in December 2023 to US$ 24,541 million by December 2024. This period saw the debt to assets ratio climb steadily from 0.08 back to 0.10, indicating a moderate increase in financial leverage.
- Significant Expansion Phase (March 2025 – March 2026)
- The final year of the analyzed period is characterized by a sharp increase in both total assets and total debt. Total assets jumped from US$ 256,397 million in December 2024 to US$ 329,551 million by March 31, 2026. Concurrently, total debt escalated rapidly, peaking at US$ 45,428 million. The growth in debt outpaced the growth in assets, resulting in the debt to assets ratio reaching a period high of 0.14.
Overall, the data indicates a shift from a strategy of debt reduction to one of aggressive balance sheet expansion. While the company maintained a low leverage profile between 2022 and 2024, the recent surge in both borrowing and asset totals has increased the proportion of assets financed through debt.
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Financial Leverage
Chevron Corp., financial leverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Total assets | 329,551) | 324,012) | 326,501) | 250,820) | 256,397) | 256,938) | 259,232) | 260,644) | 261,651) | 261,632) | 263,927) | 251,779) | 255,886) | 257,709) | 259,735) | 257,936) | 249,048) | ||||||
| Total Chevron Corporation stockholders’ equity | 183,715) | 186,450) | 189,843) | 146,417) | 149,244) | 152,318) | 156,202) | 159,233) | 160,625) | 160,957) | 165,265) | 158,325) | 159,449) | 159,282) | 158,680) | 153,554) | 146,219) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Financial leverage1 | 1.79 | 1.74 | 1.72 | 1.71 | 1.72 | 1.69 | 1.66 | 1.64 | 1.63 | 1.63 | 1.60 | 1.59 | 1.60 | 1.62 | 1.64 | 1.68 | 1.70 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||
| ConocoPhillips | 1.90 | 1.89 | 1.89 | 1.87 | 1.90 | 1.89 | 1.94 | 1.93 | 1.93 | 1.95 | 1.96 | 1.89 | 1.91 | 1.95 | 1.93 | 1.87 | 1.90 | ||||||
| Exxon Mobil Corp. | 1.83 | 1.73 | 1.74 | 1.70 | 1.72 | 1.72 | 1.72 | 1.72 | 1.84 | 1.84 | 1.86 | 1.82 | 1.86 | 1.89 | 1.99 | 2.07 | 2.10 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Financial leverage = Total assets ÷ Total Chevron Corporation stockholders’ equity
= 329,551 ÷ 183,715 = 1.79
2 Click competitor name to see calculations.
The financial leverage of the organization exhibits a U-shaped trajectory over the analyzed period, characterized by an initial phase of deleveraging followed by a sustained increase in the ratio of total assets to stockholders' equity.
- Leverage Ratio Trends
- A downward trend in financial leverage is observed from March 31, 2022, to June 30, 2023, where the ratio declined from 1.70 to a period low of 1.59. This improvement in solvency suggests a strategic reduction in reliance on debt or a relative increase in equity capitalization. However, this trend reversed starting in the second half of 2023, with the ratio steadily climbing to 1.71 by June 30, 2025, and reaching a peak of 1.79 by March 31, 2026.
- Asset and Equity Dynamics
- Between March 2022 and June 2025, total assets remained relatively stable, fluctuating within a range of approximately US$ 249 billion to US$ 264 billion. During the initial deleveraging phase, stockholders' equity grew from US$ 146.2 billion to a peak of US$ 165.3 billion in September 2023. A subsequent contraction in equity to US$ 146.4 billion by June 2025 contributed to the rising leverage ratio during that window.
- Balance Sheet Expansion
- A significant shift in the capital structure is evident starting September 30, 2025, marked by a substantial increase in total assets, which rose to US$ 326.5 billion. While stockholders' equity also increased sharply to US$ 189.8 billion during the same period, the growth in assets outpaced the growth in equity. This imbalance resulted in a continued upward trajectory of the financial leverage ratio, concluding the period at its highest level of 1.79.
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Interest Coverage
Chevron Corp., interest coverage calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Net income attributable to Chevron Corporation | 2,210) | 2,770) | 3,539) | 2,490) | 3,500) | 3,239) | 4,487) | 4,434) | 5,501) | 2,259) | 6,526) | 6,010) | 6,574) | 6,353) | 11,231) | 11,622) | 6,259) | ||||||
| Add: Net income attributable to noncontrolling interest | 83) | 75) | 74) | 25) | 12) | 20) | 9) | 9) | 50) | (16) | 29) | (2) | 31) | 25) | 7) | 93) | 18) | ||||||
| Add: Income tax expense | 1,653) | 1,754) | 1,801) | 1,632) | 2,071) | 2,800) | 1,993) | 2,593) | 2,371) | 1,247) | 2,183) | 1,829) | 2,914) | 3,430) | 3,571) | 4,288) | 2,777) | ||||||
| Add: Interest and debt expense | 345) | 361) | 370) | 274) | 212) | 199) | 164) | 113) | 118) | 120) | 114) | 120) | 115) | 123) | 128) | 129) | 136) | ||||||
| Earnings before interest and tax (EBIT) | 4,291) | 4,960) | 5,784) | 4,421) | 5,795) | 6,258) | 6,653) | 7,149) | 8,040) | 3,610) | 8,852) | 7,957) | 9,634) | 9,931) | 14,937) | 16,132) | 9,190) | ||||||
| Solvency Ratio | |||||||||||||||||||||||
| Interest coverage1 | 14.41 | 17.22 | 21.10 | 27.24 | 37.58 | 47.31 | 49.42 | 59.46 | 60.29 | 64.08 | 77.06 | 87.36 | 102.29 | 97.27 | 86.49 | 68.50 | 44.87 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||
| ConocoPhillips | 14.62 | 15.80 | 16.72 | 17.75 | 19.30 | 18.46 | 19.45 | 20.40 | 20.49 | 21.88 | 24.35 | 28.69 | 33.08 | 36.07 | 33.30 | 28.10 | 22.60 | ||||||
| Exxon Mobil Corp. | 53.86 | 69.44 | 59.41 | 53.86 | 50.09 | 50.07 | 52.17 | 54.97 | 54.07 | 63.17 | 74.98 | 85.62 | 108.93 | 94.68 | 88.00 | 68.10 | 42.27 | ||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Interest coverage
= (EBITQ1 2026
+ EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025)
÷ (Interest expenseQ1 2026
+ Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025)
= (4,291 + 4,960 + 5,784 + 4,421)
÷ (345 + 361 + 370 + 274)
= 14.41
2 Click competitor name to see calculations.
The solvency profile of the entity exhibits a significant shift over the analyzed period, characterized by a peak in coverage capacity followed by a sustained and accelerating decline. While the ability to service debt remains intact, the margin of safety has contracted substantially between early 2023 and early 2026.
- Earnings Before Interest and Tax (EBIT) Trends
- Operating earnings peaked in June 2022 at 16,132 million USD before entering a general downward trajectory. A notable volatility is observed in late 2023, with a sharp decline to 3,610 million USD in December 2023. From 2024 through March 2026, EBIT shows a consistent erosion, falling from 8,040 million USD to 4,291 million USD, representing a significant reduction in the primary income source used to cover financial obligations.
- Interest and Debt Expense Evolution
- Debt service costs remained relatively stable and low between March 2022 and June 2024, fluctuating within a narrow range of 113 million USD to 136 million USD. However, a structural increase began in September 2024, with expenses rising to 164 million USD and continuing a steep ascent to reach 345 million USD by March 2026. This upward trend indicates either an increase in total debt load or higher borrowing costs.
- Interest Coverage Ratio Analysis
- The interest coverage ratio experienced an initial expansion, rising from 44.87 in March 2022 to a peak of 102.29 in March 2023. Following this peak, a continuous and accelerating decline is evident. The ratio dropped to 60.29 by March 2024 and further collapsed to 14.41 by March 2026. This deterioration is the result of a dual negative impact: the simultaneous decline in operating earnings and the sharp increase in interest expenditures.
The combined effect of these trends indicates a weakening solvency position. The substantial compression of the interest coverage ratio suggests that the entity is becoming more leveraged or facing higher capital costs, which, coupled with declining EBIT, reduces the overall financial flexibility.
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